Location: Sheboygan, WI | Metro: Fond du Lac, WI MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $305,321 | 0.4% | F |
| 3BR | $1,490 | $412,353 | 0.36% | F |
| 4BR | $1,610 | $470,604 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 53040, located in Kewaskum, WI, stands out within Washington County due to its unique demographic and economic profile. With a population of 8,630 residents, it has a rental rate of 15.4%, which is slightly below the national average. The median income here is $96,096, indicating a relatively affluent community. However, the median home value of $395,070 suggests that homeownership is still a significant financial commitment for most residents.
The voucher economics in ZIP 53040 align closely with the local housing market. The Fair Market Rent (FMR) for the area, set at $1,090 for fiscal year 2024, is nearly identical to the market rent of $1,092 as reported by the Census Bureau's American Community Survey (ACS). This parity between FMR and market rent means that Section 8 vouchers can effectively cover the cost of renting in the area without placing an undue burden on landlords. It also indicates that the rental market is stable, reflecting the broader economic conditions of the ZIP code.
Given the data, ZIP 53040 appears to be a stable market. The close alignment of FMR and market rents suggests that there is little pressure on either side—landlords are not likely to face significant losses when accepting vouchers, nor are tenants likely to struggle with rent payments. Additionally, the modest rental rate combined with a high median income implies that the majority of residents are homeowners who benefit from the strong local economy. This stability is further reinforced by the median home values, which suggest that the housing stock is well-maintained and appreciated.
Landlords and small-portfolio investors should find the environment in Kewaskum, WI, favorable for long-term investments. The market dynamics support steady returns, and the economic indicators point to a resilient local economy capable of sustaining property values and rental rates. There is no indication of rapid change or transition; rather, the data suggests a balanced and stable community where both renters and owners can thrive.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.